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Gold Weekly Price Forecast – Gold Markets Plunge for the Week

By:
Christopher Lewis
Published: May 26, 2023, 17:25 GMT+00:00

Gold markets have fallen rather hard during the week, as we have seen interest rates play havoc with the market.

Gold, FX Empire

In this article:

Gold Price Predictions Video for 29.05.23

Gold Weekly Technical Analysis

Gold markets have fallen hard during the trading week to test the $1940 region. Looking at the chart, it’s obvious that there is a significant amount of support underneath, and we are most certainly testing an important trendline that could come into the picture. That being said, it does look like we had gotten a little overdone recently, as we had formed a bit of a “triple top” near the $2100 level.

That being said, I don’t necessarily think that the market is one that you need to be aggressive in. We will likely continue to see a lot of noise in the general vicinity, and it’s worth noting that the market has seen a lot of downward pressure, but every time we have pulled back, there has been a lot of buying pressure. When you look at this chart, it’s obvious that we had gotten a bit “heavy,” but it looks to me as if we will eventually find a nice buying opportunity. That being said, it’s also very possible that volatility will continue to be a major factor in this market.

You should also pay close attention to the US dollar, because it looks like the negative correlation has strengthened as of late. If the US dollar continues to strengthen in general, that might cause some issues for gold. Regardless, the market may have gotten a little bit ahead of itself as of late, so I think this pullback makes quite a bit of sense. It is probably only a matter of time before I will be a buyer again, but I need to see some supportive bounce and short-term follow-through in order to go long.

For a look at all of today’s economic events, check out our economic calendar.

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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